O'Neill v The Revenue Commissioners

Turnipman

Has anyone seen a report about this case which was to determine who is liable to pay the income tax due on the "qualified adult" add-on to the State pension.

Revenue had claimed that the Principal Claimant is liable to pay the tax due on the QA payment, even though the QA payment goes directly to the QA meaning that the Claimant may not have any access to or derive any benefit from the QA payment. This also means that the QA cannot claim the €1650 PAYE credit.

I understand that Revenue lost the case. This verdict may be good news for lots of OAPs with a QA and who have both a State pension and additional income, unless Revenue appeal it (and I suspect that they will!).

The only court report that I can find online is this one: https://ie.vlex.com/vid/neill-v-the-revenue-730717317 and that doesn't provide the full transcript.

Can anyone point me to any further information about this case, please?

scheister

Turnipman wrote: »

Has anyone seen a report about this case which was to determine who is liable to pay the income tax due on the "qualified adult" add-on to the State pension.

Revenue had claimed that the Principal Claimant is liable to pay the tax due on the QA payment, even though the QA payment goes directly to the QA meaning that the Claimant may not have any access to or derive any benefit from the QA payment. This also means that the QA cannot claim the €1650 PAYE credit.

I understand that Revenue lost the case. This verdict may be good news for lots of OAPs with a QA and who have both a State pension and additional income, unless Revenue appeal it (and I suspect that they will!).

The only court report that I can find online is this one: https://ie.vlex.com/vid/neill-v-the-revenue-730717317 and that doesn't provide the full transcript.

Can anyone point me to any further information about this case, please?

Courts.ie is normally where i would look for judgements like this. here is the link to that case
http://www.courts.ie/Judgments.nsf/09859e7a3f34669680256ef3004a27de/dae58c3bcfe52c8b802582c000559661?OpenDocument

Turnipman

scheister wrote: »

Courts.ie is normally where i would look for judgements like this. here is the link to that case
http://www.courts.ie/Judgments.nsf/09859e7a3f34669680256ef3004a27de/dae58c3bcfe52c8b802582c000559661?OpenDocument

Perfect, many thanks.

"22. Accordingly the answer to the question “ whether on the basis of the evidence given and the facts proved or admitted in the submissions of the parties and the law the beneficial interest in the increased pension is vested in the appellant, as opposed to his spouse, the “qualified adult” the recipient of the pension ?” is “No”."

Well done, Ms. Justice Caroline Costello!

From reading this judgement it seems that the liability to pay tax is on the qualified adult as the beneficiary not on the person who is receiving the State pension. This may mean that the QA would be eligible to claim the PAYE allowance of €1,650 as well as that the couple's 20% tax band would be widened. Interesting!

scheister

Turnipman wrote: »

Perfect, many thanks.

"22. Accordingly the answer to the question “ whether on the basis of the evidence given and the facts proved or admitted in the submissions of the parties and the law the beneficial interest in the increased pension is vested in the appellant, as opposed to his spouse, the “qualified adult” the recipient of the pension ?” is “No”."

Well done, Ms. Justice Caroline Costello!

From reading this judgement it seems that the liability to pay tax is on the qualified adult as the beneficiary not on the person who is receiving the State pension. This may mean that the QA would be eligible to claim the PAYE allowance of €1,650 as well as that the couple's 20% tax band would be widened. Interesting!

I had a friend who was paying tax for years on the basis the QA was her income. Revenue turned around to her two years ago handed back the money and said it has to be included on her ex's return as it was linked to his pension. The above makes more sense as the money to paid to and for the QA why should it not be taxable on them.

Heisenburg81

scheister wrote: »

I had a friend who was paying tax for years on the basis the QA was her income. Revenue turned around to her two years ago handed back the money and said it has to be included on her ex's return as it was linked to his pension. The above makes more sense as the money to paid to and for the QA why should it not be taxable on them.

So can returns for 2017 be prepared on the basis of the QA now having a PAYE Credit?

Heisenburg81

Heisenburg81 wrote: »

So can returns for 2017 be prepared on the basis of the QA now having a PAYE Credit?

Anybody have an opinion on this?

Turnipman

Heisenburg81 wrote: »

Anybody have an opinion on this?

My unqualified opinion is that peoples' 2017 tax returns should be prepared on the basis of the tax laws that applied for the 2017 tax year.

Should the legislation subsequently be changed and if the change is retrospective, then taxpayers could apply for a refund.

If on the other hand Revenue succeed in appealing this judgement, then people who have't paid the tax due could face being hit by interest and penalties.

ismat

As far as I know this has been addressed by revenue for all years since 2015 by amending the TCA to reflect their position that the income is not income of the qualified dependent. The case only referred to years prior to this which in effect cannot be amended at this stage under the 4 year rule,except of course 2014 until the end of this year

ThumbTaxed

Thought this was old news